Wall Street falls as inflation surprise, semiconductor selloff drag Nasdaq down 1.9%

Major US stock indexes closed lower Wednesday after September consumer prices came in hotter than expected, stoking inflation fears and raising the prospect of further Federal Reserve benchmark interest rate hikes. The selloff was concentrated in AI and semiconductor stocks.

The Dow Jones Industrial Average fell 48.62 points, or 0.09 percent, to close at 51,621.48 on the New York Stock Exchange on Wednesday (local time).

The S&P 500 dropped 86.51 points, or 1.11 percent, to 7,718.94. The tech-heavy Nasdaq Composite tumbled 511.51 points, or 1.88 percent, to close at 26,692.87.